The DOJ reached a settlement with Baptist Health System Inc. (Baptist Health) to resolve allegations of violating the False Claims Act (“FCA”). Baptist Health is a not-for-profit Florida parent corporation for a network of hospitals and medical providers that submit claims to federal healthcare programs. Baptist Health will pay $1.5 million to resolve allegations that it knowingly caused its subsidiaries to offer discounts to induce patients to purchase or refer Baptist Health services.
According to the Government, from January 1, 2016 through August 15, 2022, Baptist Health subsidiaries provided up to 50 percent or more discounts on patient cost sharing obligation balances, for certain categories of Medicare beneficiaries, without regard to any financial need considerations. The foregoing discounts allegedly were provided in exchange for Medicare beneficiaries’ purchase and/or referral of services from Baptist Health subsidiaries. The Anti-Kickback Statute (“AKS”) is a criminal statute that prohibits remuneration to induce or reward patient referrals or services payable by federal health care programs, like Medicare. Baptist Health voluntarily disclosed that some patient discounts violated the AKS, which rendered claims submitted to Medicare false under the FCA.
Baptist Health’s self-disclosure and cooperation was taken into consideration, per the Justice Manual Section 4-4.112. In addition to paying $1.5 million, plus interest, Baptist Health waived any defenses it may have to criminal prosecution stemming from allegations related to this settlement.
The attorneys at Chilivis Grubman represent clients of all types and sizes in connection to False Claims Act investigations and litigation. If you need assistance with such a matter, please contact us today.